Table 14-8 Suppose That a Firm in a Competitive Market Faces the Faces

question 373

Multiple Choice

Table 14-8
Suppose that a firm in a competitive market faces the following revenues and costs:

-Refer to Table 14-8.In order to maximize profits,the firm will produce

• A) 1 unit of output because marginal cost is minimized.
• B) 4 units of output because marginal revenue exceeds marginal cost.
• C) 6 units of output because marginal revenue equals marginal cost.
• D) 8 units of output because total revenue is maximized.

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Definitions:

Federal Trade Commission

A U.S. federal agency tasked with protecting consumers and promoting competition by preventing anticompetitive, deceptive, and unfair business practices.

Telemarketing Sales Rule

A regulation established to protect consumers from deceptive, abusive, or unfair telemarketing practices, including requirements on disclosures and consent.

Mail or Telephone Order Merchandise Rule

A Federal Trade Commission rule that requires sellers who solicit buyers through mail or phone orders to ship items within the time frame promised or, if no time is promised, within 30 days.

Mail-Order Sales

A sales process where products are ordered through mail correspondence or online and shipped directly to the consumer's address.